Former Attorney-General of the Federation Abubakar Malami and his successor, Lateef Fagbemi, have offered differing accounts of the $200m settlement between the Federal Government and Sunrise Power. The dispute concerns the Mambilla Hydroelectric Power Project. Their comments followed a 16 September ruling by an International Chamber of Commerce tribunal in Paris. The tribunal rejected Sunrise Power’s claims against Nigeria. It ordered the company and its promoter, Leno Adesanya, to reimburse Nigeria $11.82m in legal fees and $414,125 in arbitration costs.
Mambilla has been on the books since the 1970s. In 1982, the government announced plans for a 3,050MW complex in Taraba State. Successive administrations promised delivery. None came. In 2017, the government awarded a $5.8 billion contract to a consortium involving Sunrise Power and China’s Sinohydro. Sunrise later claimed the award was improperly handled. It took the dispute to the ICC. The arbitration ran for years. It held up financing and construction. The $200m settlement was an attempt to resolve the dispute. It became a scandal.
Malami defended the settlement. He said it was an attempt to resolve a long-running dispute. He denied any personal financial benefit. He noted that the $200m was never paid. Fagbemi said the litigation had delayed the Mambilla project. He said it contributed to Nigeria’s energy challenges.
The tribunal found the settlement agreements unenforceable. It cited lack of authority, corruption and breaches of Nigerian public policy. That finding is significant. It validates the government’s position that the settlement was improper. It also raises questions about who authorised it.
The ruling clears a legal hurdle. The government can now proceed with procurement and financing. Mambilla requires roads, transmission lines and resettlement. The government has not disclosed a revised timeline. The ruling is a legal win. It is not a power plant.
The dispute between Malami and Fagbemi is political. It reflects competing narratives. Malami says he acted in good faith. Fagbemi says the litigation hurt Nigeria. Both may be true. The tribunal’s finding on corruption is the most damaging. It suggests the settlement was tainted.
Winners: The Federal Government, which gains legal certainty and reimbursements. The Ministry of Power, which can revive the project. Chinese contractors, who may bid again. Losers: Sunrise Power, which loses its claims and pays costs. Leno Adesanya, who faces the reimbursement order. Malami, whose settlement is found unenforceable. Nigerian taxpayers, if the project stalls again. Consumers, who wait for power.
Bottom Line: The ICC rejected Sunrise’s claims. It ordered reimbursement. The settlement was found unenforceable. Mambilla can now move forward. The legal hurdle is gone. The construction hurdle remains. Nigeria needs power. It also needs clean procurement. Both matter.